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Boom Goes Plant City


Fast-pitch growth keeps pace
with multilingual softball.


BY Melissa Wells

It won't be the Cincinnati Reds, but next year an umpire will yell "Play ball" at Plant City Stadium, and the International Softball Federation will break in its inaugural events in its new world headquarters. It won't surprise sports fans if records for attendance at the stadium are broken. And the development doesn't surprise the business community, because records of another sort are being set, too, a sure indication that Plant City is in a high-growth mode.

Bert Martin Jr., president of Clearwater-based Sterile Recoveries, displays the family of disposable and reusable surgical products that led to his firm's expansion to Plant City.
Timothy Healy


"We're experiencing a boom and, in fact, we're setting records right now as far as permits pulled," says Danny Wilkes, chairman of the board of the Plant City Chamber of Commerce. "This is a combination of local businesses expanding, more retail coming in and new apartment complexes."

The building department issued permits in 1998 valued at $30.3 million and for the first nine months this year has issued more than twice that amount: $64.1 million. "Our previous record was in 1996 at $60.9 million," Wilkes says.

Some of the projects needing those permits include the 70-room, four-story Holiday Inn Express at I-4 being developed by Ocean Springs, Miss.-based Smit Investment Corp. The Sembler Company is building an Eckerd drugstore and SunTrust Bank branch at Baker and Alexander streets, and Beall's department store is expanding by 26,000 square feet, doubling its retail space. South Florida Baptist Hospital is adding 26,000 square feet at its surgery center, and Beverly Health Care plans to demolish the 28,000-square-foot Forest Park nursing home only to replace it with a new 40,000-square-foot building. New multifamily residential projects include Village at Park Road with 248 luxury units, the 200- unit Park Springs development and 120-unit Tall Timbers project.

Experts in the market say there's more to these impressive statistics than an excellent overall economy.

A turn off the I-4 Corridor

"Plant City is a direct beneficiary of the general success of the I-4 corridor and the expansion of companies out of the eastern Tampa market," says Ed Miller of Colliers Arnold Commercial Real Estate Services. "We're looking at a gradual consolidation of the Plant City, Lakeland and Orlando markets. This is a very logical corridor and Plant City is well positioned to take advantage of these trends."

While availability of land and access to transportation corridors are reasons often cited by firms in establishing operations in Plant City, officials are not resting. "Infrastructure is something we've worked on for years to build," Wilkes says. "We have water and sewer capacity. Our roads are in excellent condition and in shape for this development (boom). Once I-4 is completed at the end of the year, it should really open us up."

Completion of the I-4 expansion project wasn't necessary before Sterile Recoveries (Nasdaq:STRC) opened a new 41,000-square-foot manufacturing facility at the Walden Woods Business Center, which is a joint project of Watermark Communities Inc. and TECO Realty Inc. The new plant replaces one that the Clearwater-based firm previously operated in Orlando.

The 6,700-seat Plant City stadium, once the Spring Training home of the Cincinnati Reds, is being converted to a softball facility for the International Softball Federation.
D.J. Wilson

Sterile Recoveries, formed in 1991 to process reusable surgical products for the operating suite, has grown its annual revenues from $32 million in 1996, when the firm went public, to $52 million last year. "Analysts have us on a $70-million pace for 1999," says Bert Martin Jr., the firm's president. "Where we are so far, that's pretty much on track."

As revenues have increased, the company has expanded its market to include 425 hospitals across the nation. It has 10 regional plants for the distribution of products. "Our plant in Orlando was closed to move to Plant City, which had the availability of space and a high-quality work force," Martin says. "Quite frankly, we would rank [the work force in Plant City] among the top work forces we've found around the country from the standpoint of work ethic."

Twenty employees are staffing the Plant City operation, which "assembles complementary disposable products for delivery to the surgical suite," says Martin. And although the firm still focuses mainly on reusables - such as gowns, towels, drapes, basins and instruments - disposables are playing an ever-increasing role in its marketing strategy.

"The percent of disposables is growing," Martin says. "We still make as much reusable as possible. The waste factor we eliminate out of the hospital is significant. We take 70 percent of bulk waste out of a surgical procedure, and that adds up to millions of pounds that don't go into landfills. This makes the most economic sense."

Growth at Walden Woods

Joining Sterile Recoveries as new corporate neighbors in Walden Woods Business Center this year are food supplier A. Camacho Inc. and Dukes Chiropractic Center, which recently bought a three-acre lot for a new medical office. ATCO Rubber Products Inc., based in Fort Worth, Texas, has recently closed on 10 acres and plans to build a new 100,000-square-foot facility in which to manufacture products such as rubber seals for windows. The firm is currently operating in a 20,000-square-foot building at Plant City Industrial Park.

A. Camacho Inc. moved from Tampa into its new $1.5-million, 35,000- square-foot distribution center at Walden Woods Business Center early in the year. The food supplier specializes in the distribution of Spanish olives to grocers and restaurants. Their $30 million in annual revenues come from accounts such as Publix Super Markets Inc., Food Lion Inc., and Albertsons Inc., which also have distribution centers along the I-4 corridor. The firm, based in Spain, also has U.S. facilities in Erlanger, Ky. and Chicago, serving the bulk of its customers east of the Mississippi River. Their next expansion is a distribution center in Reno, Nev., for serving the Western U.S. market. In addition to its olives grown within a 50-mile diameter of Seville, Spain, the firm also distributes olive oil, Greek olives and peppers, capers, cocktail onions, preserves, barbecue sauce and cheeses.

"A lot of our customers pick up merchandise, and we needed a convenient location," says Merle Hanneken, the firm's executive vice president of U.S. Operations. "Albertsons and Food Lion have distribution warehouses here [in Plant City] and Publix is just nine or 10 miles down the road.

"This community was attractive to us," Hanneken adds. "We got an inquiry from Walden Woods. Their property was ideal and their price very, very competitive. Permits and SWFTMD [Southwest Florida Water Management District] approvals were already in place. That made it much quicker and less expensive to move into this facility, rather than buying acreage out some place and starting from square one." While the Walden Woods Business Center has enjoyed an influx of businesses, it did take one hit this year. Republic Industries had opened a $5- million automobile reconditioning center in 1997 that brought more than 100 jobs to Plant City. But the Fort Lauderdale-based company, mired in financial troubles, closed down the facility.

What's in the tank?

Also recently testing Plant City's permitting process, American Tank & Equipment Company is expanding from a 5,000-square-foot facility into a new 13,500-square-foot building. The 19- employee firm, which started distributing polyethylene tanks to industrial chemical users and agricultural establishments in 1996, finds itself a natural fit for Plant City's agrarian community.

"The city has been very good to us," says Dallas Owens, the firm's co- owner. "Their support has been tremendous and as the strawberry capital of the world, it's an easy fit for an agricultural business to be in Plant City. The agricultural market is our largest focus right now."

Another factor in the location of the firm is proximity to a vast transportation network. "I chose Plant City because I liked the geographic location and the abundant industry already here," Owens says. "Tampa's growth is moving east and Orlando seems to be moving west. Plant City is in the middle of all this. It's close to I-4, I-75, U.S. Highway 60, U.S. Highway 27, easy routes to get product to our customers no matter where they are in the state."

Annual revenues at American Tank are "tracking at $2.7 million," says Owens. "By the end of 2000 we'll have 27 employees and over $3 million in annual revenues. This is tremendous growth for us."

Another Plant City firm tracking excellent revenue growth is The Hay Exchange, which distributes baled hay to independently owned feed stores throughout the Southeast and the Caribbean. Currently operating in a 6,000-square-foot facility, the 10-employee firm plans on occupying its new 24,500-sf distribution center by the end of the first quarter 2000.

Bill Glisson, the firm's president, says he imports hay from "all over North America, Alberta, Canada and Ontario. Florida is a forage-deficient state and as Florida continues to grow, typical grazing land is evaporating and horse owners are dependent on buying baled forage."

Glisson expects to add another five employees when the new facility opens and to double his staff within 18 months. "Our growth is due to needs in the market place," he says. "We're the only company that brings hay in, palletizes it and redelivers on pallets to minimize the work of retailers. In some cases, my customers no longer manually unload hay, which reduces costs of labor and insurance."

Another successful strategy for Glisson's firm is the "drop trailer program, where we load hay into our semi trailers and drop off the trailer, providing storage for retailers," he says. "I leave the trailer on the premises and they sell out of it. I had two when we opened and have over 40 now. I have a waiting list for this program."

Glisson uses 28-foot "pup" trailers instead of standard 53-foot trailers. "We use those because they hold half as much hay, which the retailer can turn a lot faster," he says. "It benefits all of us. I turn my equipment over, there's fresher product for customers and retailers are laying out less capital."

The laying out of capital at Plant City Commerce Center has led to development of a 100,000-square-foot speculative distribution and manufacturing warehouse at County Line Road just south of I-4. "We have two prospects for half the building," says Bill Loftin of Loftin Real Estate, the developer of the project. "It's a dock-high building of tilt-wall construction with fiber optics."

Two hundred forty-five acres at the business park are zoned for two million square feet of industrial buildings. The first 90,000-square-foot building was bought by Fabwel, "a company out of Indiana that came in two years ago," Loftin says.

Between the airports

The business park has rail service and is a "great place to be, between two major airports," says Loftin. "We have plenty of capacity for sewer and water. We have an interlocal agreement between Lakeland and Plant City for water in event that either side of County Line Road suddenly needs greater capacity. They just turn a valve and both cities contribute water. That's for a big fire or something like that." Ten acres have been allocated for Class A office buildings. "We have park restrictions for tilt wall or concrete construction," he adds. "And there will be no outside storage areas littering the aesthetics of the park. This will be a very clean environment."

Another industrial property, the Plant City Steel building, has cleaned up its act after closing in the mid Ô90s. Capital Resource Group, a Naples-based investment firm, purchased the building last year, and CSR Rinker became the anchor tenant occupying 56,788 square feet. This year Mid-Cities Fabrication occupied 42,351 square feet, leaving a vacancy of 65,000 square feet of industrial space and an 18,400-square-foot freestanding office building.

"The original idea was to tear it down and redevelop into something else," says Miller. "We have instead been able to find tenants to use the building. There's a lot of history in the place and the owners are glad to put it back into productive use. It's not going to win awards in Architectural Digest, but it's a good, functional facility."

Recycling the ball park

Another facility in Plant City was nearly torn down but instead is being returned to good, functional use. The Plant City baseball stadium, which has been mostly idle since the Cincinnati Reds relocated their spring training camp a few years ago, was a candidate for demolition until the International Softball Federation, currently based in Oklahoma City, selected it as its new headquarters. The 6,700-seat stadium will be converted for softball, and it will be used year round by its 112 member nations.

In addition to softball games, the federation plans to open a hall of fame, and Olympic training center for players in Central, South and North America and a training facility for umpires, coaches and administrators.

"This stadium is an incredible asset sitting in eastern Hillsborough County," says Randy Larson, former mayor and chairman of the committee that is facilitating the relocation of the federation. "The Women's Professional Softball League played their All-Star game there last summer. ESPN2 carried it and gave a lot of commentary on Hillsborough County and the International Softball Federation."

The federation plans to occupy its new headquarters early next year. "We hope to have everything ready to go in January," says Don Porter, the federation's president. "Several employees will relocate from Oklahoma City and we'll hire additional staff once we get there.

"We're looking forward to a good relationship with the city and working with them to bring as many events and activities as we can to that facility," he adds. "The Plant City officials are very positive and have been very helpful over all."

While Plant City Stadium is being fixed up for the federation, downtown has been sprucing up as well. The old city hall is being torn down and that block will serve as parking for the new 40,000-square-foot, $5.2-million city hall across the street. That's just one project of several by the city this year.

"The city has spent $1.2 million on McCall Park and parking downtown," says Mike Sparkman, the city's vice mayor and chairman of the Community Redevelopment Agency.

"We've received a $100,000 grant from the Department of Transportation for renovations to convert the former train depot into a welcome center. Sidewalks are being redone, and some of the old red brick streets are being restored. We have a great team here with a lot of people who are working together to get things done."

One example of that teamwork on a special kind of construction project put the city in the Guinness Book of World Records. "We utilized the street by McCall Park this past summer to construct the world's largest strawberry shortcake," Sparkman says.

Miller, of Colliers Arnold, agrees with Sparkman. "There's a lot of cooperation between local government and private industry," he says. "People know each other. It's a distinctive community and has been around as long as Tampa. H. B. Plant brought rail to Tampa and lent his name to Plant City. They have an identity, a sense of place and quality of life."

Copyright Maddux Report L.C. 1999